Algerian Arms Deal Brings Russia $7.5 billion, Gas Market Leverage
April 11/16: Algeria has upped its orders of Mi-28NE helicopters from the eight initially reported in January to 42, according to a Russian newspaper. A further 19 of the “Night-Hunter” helicopters will also make their way to Iraq. The helicopters have recently seen action in Syria battling Islamic State militants, and it has been said that the radio-electronic jamming systems on board easily suppressed man-portable air defense systems (MANPADS) deployed against them by the insurgents. With interest being expressed from over half a dozen nations spanning from Latin America to South East Asia, the helicopter is certainly selling itself well during its recent military activity.
A February 2006 report noted that a $4 billion arms sale was brewing between Algeria and Russia involving fighter aircraft, tanks, and air defense systems, with the possibility of additional equipment. Those options came through the following month, as a high-level Russian delegation in Algeria closed up to $7.5 billion worth of arms contracts. The Algerian package remains post-Soviet Russia’s largest single arms deal. As an instructive comparison, annual Russian weapons export orders from all customers were just $5-6 billion per year in 2004 and 2005.
Reuters South Africa quoted Rosoboronexport chief Sergei Chemezov as saying that “Practically all types of arms which we have are included, anti-missile systems, aviation, sea and land technology.” The actual contents of that deal were murky, though DID offers triangulation among several sources to help sort out the confusion. A number of these deals have evolved over time, and other public-source information has helped to sharpen the picture a bit. The subsequent crash of Algeria’s MiG-29 deal, and its ripple effects, are also discussed.
The Algerian Package: What’s the Big Deal?
Structuring the Deal: Anatomy of a Euro-Squeeze
Contracts and Key Events
2015 – 2016
2010 – 2014
2006 – 2009
Appendix A: Algeria’s Appetite for Advanced Arms
Appendix B: Russia’s Arms Industry Woes
Appendix C: Additional Readings & Sources
News & Views
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